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The design made its maiden flight in 2001. As with the Cresco, horizontal tail surfaces presented difficulties, and these were redesigned before the type entered production. The PAC 750 received full US FAAcertification in 2004.

The type was targeted initially to the narrow market of skydiving. In the parachuting role, the high-lift wings from the Cresco and relatively high power-to-weight ratio enable the PAC 750 to take a load of parachutists to 12,000 feet (3,700 m) and return to land in ten minutes.

A wider market was subsequently sought, and examples have been sold for use in utility roles, including freight, agricultural applications, passenger operations, aerial photography and surveying. Two aircraft have been extensively modified for geo-survey work, being fitted with a magnetic anomaly detector sting tail. Proposed ski and float conversions have yet to fly. The P-750 XSTOL is used in South Africa by NatureLink on United Nations Humanitarian Air Services / World Food Programme contracts. While the manufacturer claims lower single-engine running costs than many other utility types, for example, the twin-engined DHC-6 Twin Otter, the type has less usable volume (large cargo panniers providing a partial solution).

Over 50 aircraft have been ordered in New Zealand by 2008, when the manufacturer stated production was increasing from 12 to 24 per year.[1] In 2008 there was some New Zealand media criticism of government assistance for the manufacturer following cancellation of a large order.

The aircraft is currently marketed as the P-750 XSTOL. Pacific Aerospace offers the P-750 XSTOL in many configurations - Passenger, Freight/Cargo, Skydive, Agricultural, Aerial Survey and Surveillance. The aircraft is marketed as excelling on rough, unpaved airstrips and is available with a Wide Tyre modification for this purpose. The Defender II version is being developed for COIN and light attack.

For passenger and cargo operations, the cabin can be outfitted with up to nine passenger seats or with cargo holds. There is also an optional 1,000 lb capacity cargo pod available which attaches to the belly of the aircraft. The aircraft can be configured as all-passenger, all-cargo or a combination of both. All variants have double cargo doors at the rear of the cabin.